Why are potential EasyFlex users stuck in the pending state?

By the end of June 2021, approximately 6 months after the launch of the EasyFlex product, we had nearly 2.6K users that were in the pending state (i.e. completed the sign-up flow and never funded their EasyFlex account). Since we would like for these users to fund their accounts and get their Savings account, we'll be looking into potential causes for this to happen and try to answer the following questions:

• What are potential causes for being stuck in the pending state?
• Which causes/ users are actionable now?
• Could we lower the funding threshold?
• What did users answer in their sign-up questions?

The main findings of this research are:

• Having a balance below 500€ is the main blocker when it comes to account funding, with about 80% of the users going below this threshold in the last 3 months.
• Even if we were able to reduce this threshold of funding to a very low amount such as 20€, we would still be excluding about two thirds of the users in the pending state.
• Only 402 users would be able to activate their EasyFlex account at the time of this research (which corresponds to 15.6% of all users in the pending state).

What are potential causes for being stuck in the pending state?

We identified 6 potential causes for users not to fund their Easyflex account:

1. They have closed their account after signing-up for the product
2. They haven't completed their sign-up process on the partner side
3. They were not MAUs in the last 6 months
4. They have never made it to the manage screen of the Easyflex product
5. They haven't consistently used spaces in the last 3 months (and therefore wouldn't have the need to move money to a savings account)
6. They had less than 500€ in their total balance at some point in the last 3 months (which would stop them from putting aside this minimum amount required for the Easyflex product)

Top 10 combinations of the 6 potential causes for users not to fund their Easyflex account

	has_closed_account	st_customer_status	is_mau_last_6_mo	screen_views_type	spaces_balance_type	total_balance_type	n_users	perc_users
0	Has open account	ACTIVE	Was MAU last 6 mo	Has manage screen views	Had no/ empty spaces	Had balance below 500€	746	29.0
1	Has open account	ACTIVE	Was MAU last 6 mo	Has manage screen views	Always had spaces balance	Had balance below 500€	382	14.9
2	Has open account	ACTIVE	Was MAU last 6 mo	No manage screen views	Always had spaces balance	Had balance below 500€	285	11.1
3	Has open account	ACTIVE	Was MAU last 6 mo	No manage screen views	Had no/ empty spaces	Had balance below 500€	233	9.1
4	Has open account	ACTIVE	Was MAU last 6 mo	No manage screen views	Always had spaces balance	Always had balance above 500€	172	6.7
5	Has open account	ACTIVE	Was MAU last 6 mo	Has manage screen views	Always had spaces balance	Always had balance above 500€	160	6.2
6	Has closed account	ACTIVE	Was MAU last 6 mo	Has manage screen views	Had no/ empty spaces	Had balance below 500€	53	2.1
7	Has open account	DOCUMENTS_PARTIALLY_SUBMITTED	Was MAU last 6 mo	Has manage screen views	Had no/ empty spaces	Had balance below 500€	31	1.2
8	Has open account	ACTIVE	Was MAU last 6 mo	Has manage screen views	Had no/ empty spaces	Always had balance above 500€	27	1.1
9	Has open account	DOCUMENTS_PARTIALLY_SUBMITTED	Was MAU last 6 mo	Has manage screen views	Always had spaces balance	Always had balance above 500€	26	1.0

Looking at the combinations above and the chart below, we can see that having a balance below 500€ is the main blocker when it comes to account funding, with about 80% of the users going below this threshold in the last 3 months.

Which causes/ users are actionable now?

If we were to reach out to users to remind them to fund their Easyflex account, the ones that could more easily do so are users who:

• Have an open account
• Have completed their sign-up process on the partner side
• Consistently had more than 500€ in their total balance in the last 3 months

This means that only 402 users would be able to activate their EasyFlex account at the moment (which corresponds to 15.6% of all users in the pending state).

	has_closed_account	customer_process_status	total_balance_type	n_users	perc_users
0	Has open account	Active Customer Process	Always had balance above 500€	402	15.6
1	Has open account	Active Customer Process	Had balance below 500€	1697	66.0
2	Has open account	Incomplete Customer Process	Always had balance above 500€	116	4.5
3	Has open account	Incomplete Customer Process	Had balance below 500€	181	7.0
4	Has closed account	Active Customer Process	Always had balance above 500€	32	1.2
5	Has closed account	Active Customer Process	Had balance below 500€	127	4.9
6	Has closed account	Incomplete Customer Process	Always had balance above 500€	7	0.3
7	Has closed account	Incomplete Customer Process	Had balance below 500€	9	0.4

Could we lower the funding threshold?

(Based on the minimum balance of these users)

Below we can see the cumulative distribution of users based on their minimum balance in the last 3 months. In the first chart we can see that the vast majority of users is centered around the 0€ balance.

Cumulative users per minimum balance in the last 3 months

(balances over 50k€ were grouped into the 50K€ value)

Since we are specifically interested in users with a minimum balance between 0€ and 500€, below we filter for the percentage of users within these values. We can see that even if we were able to reduce the threshold of funding to 20€, we would still be excluding about two thirds of the users in the pending state.

Cumulative users per minimum balance in the last 3 months - filtering on balances between 0€ and 500€

What did users answer in their sign-up questions?

We can also look into how users were expecting to use the product when they signed-up, and split them by balance type. For that we'll be looking into how they answered the following sign-up questions:

• How many times do you intend to make top-ups / withdrawals from your account in a year? (we'll identify the answers for this one as withdrawal_frequency_answer)
• What is your estimated yearly total top-up amount after the initial deposit? (total_balance_type will be the label for these answers)

The main trend we can identify here is that the overwhelming majority of users (94%) were expecting to top-up with less than 500€ after the initial deposit.

	total_balance_type	top_up_answer	withdrawal_frequency_answer	n_users	perc_users
3	Had balance below 500€	below 500€	more than 5 times a year	1312	51.0
9	Had balance below 500€	below 500€	<= 5 times per year	583	22.7
0	Always had balance above 500€	below 500€	more than 5 times a year	295	11.5
6	Always had balance above 500€	below 500€	<= 5 times per year	221	8.6
4	Had balance below 500€	500€ and higher	more than 5 times a year	51	2.0
10	Had balance below 500€	500€ and higher	<= 5 times per year	32	1.2
5	Had balance below 500€	Other	more than 5 times a year	22	0.9
1	Always had balance above 500€	500€ and higher	more than 5 times a year	19	0.7
7	Always had balance above 500€	500€ and higher	<= 5 times per year	16	0.6
11	Had balance below 500€	Other	<= 5 times per year	14	0.5
2	Always had balance above 500€	Other	more than 5 times a year	3	0.1
8	Always had balance above 500€	Other	<= 5 times per year	3	0.1

Appendix

Do we have any non-numeric values or too long numbers in the top_up_answer?

Yes, below you can find a list of these answers.

	kmptopupnumber_answer	n_answers
0	?	2
1	500-1000	2
2	kp	2
3	Don’t know	1
4		1
5	Kp	1
6	quadrat trillionen	1
7	Keine Ahnung	1
8	Л	1
9	any	1
10	20.000,00 €	1
11	1000000000000000000000	1
12	1000 - 1500	1
13	39157,92	1
14	4000 5000	1
15	12,000,00	1
16	?m	1
17	nelr	1
18	ka	1
19	zweitausend	1
20	Ja	1
21	ich weiß nicht	1
22	Weiß ich noch nicht	1
23	28.800,00	1
24	15,000.00	1
25	200.000,00	1
26	500.000.000	1
27	600 bis 1200 €	1
28	weiß ich nicht	1
29	!!!	1
30	kein ahnung	1
31	ich habe keine Ahnung	1
32	15000,00	1
33	100000,00	1
34	1000-10000	1
35	10000.0	1
36	20.400,00	1
37	1000000	1
38	15000000	1